The Future

We all have needs and wants, but when the wants outweigh the needs there is a problem. One needs to beware of good times because they can lull you into a sense of false security that the good times will always continue.

Gearhead was recently telling me about his neighbor that had a nice house and a good income and he was spending it as quickly as it was coming in on high ticket items. So his neighbor falls off his roof and becomes disabled. Suddenly he can no longer make his payments on his house. He ended up selling his home for much less than he owed on it.

Sometimes it takes something drastic to wake people up. I've been over-extended a couple of times in the past. It's scary as hell and fortunately we were able to climb out of debt each time without going under.

Have you ever asked yourself how long you can last if all of your sources of income came to an end one day? Considering how many people feel they will never be able to afford to retire it looks bleak for people that live from pay check to pay check.

Americans seem to be fiscal optimists. We always feel like things will get better or that we will one day have wind-fall. For some that is a crap shoot where there are more losers than winners.